Implementing good financial habits is very important to have a comfortable and healthy lifestyle at all points of time, be it when you are young or old. Good financial habits ensure that you do not stretch badly during low income periods or continue working long after you cross the age for retirement. Given the unpredictability of the times, and rise and fall of the value of money, one should always be well covered by maintaining a balance between income and expenditure.
Good financial habits are most important to give shape to long term planning. One must have discipline and a sense of what he or she wants or needs. This will ensure you always have enough money for the distant but compulsory expenditure, be it the higher education of your children or their marriages. You must be able to support your children and help them pursue their interests. The time frame before they are really independent is not something you could plan for. It is hence important that you maintain pools of savings for each of the needs you might have going into the future.
Health related issues are something you can never really plan enough. By rule of thumb you should always have enough personal saving so you could afford a decent treatment when you fall ill. There should be enough emergency fund stashed away safely somewhere for you to support yourself and your family if need be during bad times for example if you lose your job. Many people choose to invest in insurance, while some invest in stock and others in real estate.
Good financial habits include always having a plan to spend the money that you have earned. Once you have a plan you should stick to it, without running over the limits. You must always chalk a budget from beforehand on how much you need to pay for your bills, mortgage, insurance premiums, and so on. Having the figure in your mind, would always help you plan your future better and at the same time avoid anxiety caused by insecurity.
Once in a while it is fine if you indulge yourself and afford something luxurious, but it shouldn’t be a norm, just an exception. This habit is important and should be cultivated to make sure you don’t get pulled into a fake lifestyle that you cannot really support, and can put your whole future and your family’s too in jeopardy.